CRA indicates that a PSB rebate for purchased real estate can be deducted from the GST/HST remittance for the purchase by filing the rebate and purchase returns together

A (GST/HST-registrant) public service body which acquires real property not primarily in the course of its commercial activities is required pursuant to s. 228(4)(b) to report the GST/HST on the acquisition on a separate real estate return (GST60).

CRA indicated, however, that provided that the GST60 return is filed together with the return (e.g., GST 66) in which a PSB rebate is claimed for the GST/HST payable on the real estate acquisition then, pursuant to ETA s. 228(6), the PSB may reduce the GST/HST otherwise remittable with the GST60 return by the claimed rebate amount.

Although CRA noted that in the above circumstance, where a separate (GST60) return was required to report the acquisition, an ITC for the GST/HST on that purchase could not be recovered by filing the regular (GST34) and special (GST60) returns together given that s. 169(4)(b) would require the GST60 return to be filed first before the ITC claim could be made.

Neal Armstrong. Summary of 7 April 2022 CBA Roundtable, Q.12 under ETA s. 228(6).